As is well known, most cryptocurrency projects impose lock-up restrictions on early investors. Therefore, even for successful investment cases, venture capital companies generally need several years to recover their principal. However, many projects currently allow VC to participate in staking with locked tokens (such as SAGA, DYM, TIA, etc.), enabling them to earn substantial staking rewards before the quota is unlocked.
In order to understand how long it would take for VC to earn staking rewards, X netizen Sumokuji made a preliminary estimation of the staking returns for early investors in TIA. It is reported that Celestia raised $1.5 million in seed funding in 2021, selling approximately 159,000,000 tokens at a price of only $0.0094. Among these tokens, 33% will be unlocked in the first year, while the remaining 67% will be unlocked in batches within two years.
Sumokuji stated that based on a valuation of $10 million, $100,000 would yield 10 million tokens. The annual interest rate for staking TIA is approximately 11.23%, which translates to a monthly staking return of 90,000 TIA tokens, equivalent to $855,000. This means that Celestia’s seed investors can recoup their investment every 3.5 days solely through staking rewards, without selling their initial quota.
